Potential Head & Shoulders Forming On Amazon

Amazon (AMZN) is forming a potential bearish head and shoulders pattern, as shown on the following weekly chart.

We'll see whether it plays out, in view of their decision today (Thursday) to abandon their project to build their second headquarters in Long Island, Queens...at a loss of 25,000 jobs for New York. Their statement is here and it describes the political opposition it received.

Keep an eye on the momentum (MOM), rate-of-change (ROC), and average true range (ATR) indicators for direction and velocity purposes going forward. I've shown their input value as one period to illustrate that more clearly.

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Core Retail Sales m/m data released today (Thursday) were drastically in the red...a harbinger of things to come, or just a blip? One to watch over the coming months. Another month like this last one could hit AMZN and other retail giants hard.

(Click on image to enlarge)

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I was first introduced into the world of trading when I (along with my now-late husband) took an options course in Porlock, England in 1997...it involved buying options on the FTSE 100 Index.

The instructor was a Scottish fellow named Jock. He was very amusing and quite perceptive...during the 3-day course, he said that my hubby's strength was in entry timing and mine was in exits. Jock's view of our trading styles held true...I'm still working on fine-tuning potential entry points as I continue to observe and write about the markets.

My hubby was my trading partner up until his passing in 2011, and I've dedicated my Blog to him...he was a great inspiration and my soul-mate.